CRK  ComStocks Resources Inc.

Exchange

NYSE

Sector

Energy

Industry

Oil & Gas Production

Market Cap.

141.55M

Vuru Grade

13.00/100

Current Price

$10.52
+0.22 (+2.18%)

Company Metrics

  • P/E 16.13
  • P/S 0.84
  • P/B 0.2877
  • EPS -34.31
  • Cash ROIC -15.32%
  • Cash Ratio 1.40
  • Dividend 0 / 0%
  • Avg. Vol. 563,348.00
  • Shares 46.11M
  • Market Cap. 141.55M

Company Description

Comstock Resources, Inc. engages in the acquisition, development, production, and exploration of oil and natural gas properties in the United States. It has onshore operations primarily in the East Texas/North Louisiana and South Texas regions, as well as Mississippi, New Mexico, Kentucky, and the Mid-Continent regions. As of December 31, 2009, the company owned interests in 1,641 producing oil an... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Comstock Resources set to "go terminal," Friendly Bear says
Seeking Alpha - Feb 21, 2017
Comstock Resources (CRK +5.6%) shakes off a negative report from Friendly Bear on Seeking Alpha that says the company "will go terminal, resulting in a total or near-total wipeout for existing shareholders." The report accuses management of trying to ...
Stock Price of Comstock Resources, Inc. (CRK) Decreases -15.9% - Highland Mirror
The Comstock Resources' (CRK) Hold Rating Reaffirmed at Barclays PLC - DailyQuint
Comstock Resources Pauses After Breakout (CRK)
Investopedia - Jan 30, 2017
Comstock Resources Inc. (CRK) shares rose more than 21% on January 26, and followed through with another up day on the 27th. On January 30th, the stock took a breather. It dropped slightly to $12.55 per share on light volume, as of writing. This kind ...
Experts Analysis: Comstock Resources Inc (NYSE:CRK) - Post Registrar
Blistering News: Comstock Resources Inc. (NYSE:CRK) - TopChronicle
Comstock Resources Soars on News of Reserves (CRK)
Investopedia - Jan 27, 2017
Comstock Resources Inc. (CRK) declared on January 26 that it has an increase of 47% proved oil and gas reserves. This news took the market by surprise and sent the stock soaring on high volume.
Comstock +17% after announcing 47% increase in proved reserves - Seeking Alpha
Comstock Resources, Inc. Announces Fourth Quarter 2016 Earnings Date and ...
Nasdaq - Feb 1, 2017
The Company's operations are mainly in Texas, Louisiana, and Mississippi. A slide show presentation on the financial results will be available on Comstock's website at www.comstockresources.com. Click on "Quarterly Results" to view the slide show.
The BMO Capital Markets Reiterates Hold Rating for Comstock Resources, Inc. (CRK) - DailyQuint
Comstock Resources inks Haynesville shale joint venture
Seeking Alpha - Jan 9, 2017
Comstock Resources (CRK -3.3%) says it has entered into a joint development venture with USG Properties to target the Haynesville shale in Louisiana and Texas.
Comstock Resources Boosts Haynesville Acreage With JV - Oil and Gas Investor (registration)
Trading Options During Earnings in Comstock Resources Inc (NYSE:CRK)
CML News - 6 hours ago
We're going to examine buying and selling out of the money strangles in Comstock Resources Inc and find out once and for all what the winning trades have been during earnings releases.
Comstock Resources, Inc. Announces 1 for 5 Reverse Stock Split
Yahoo Finance - Jul 20, 2016
FRISCO, TEXAS, July 20, 2016 - Comstock Resources, Inc. ("Comstock" or the "Company") (CRK) announced today a one-for-five (1:5) reverse split of its issued and outstanding common stock.
Comstock Resources (CRK) Q3 2016 Results - Earnings Call Transcript
Seeking Alpha - Nov 8, 2016
Good day, ladies and gentlemen, and welcome to the Third Quarter 2016 Comstock Resources, Inc. Earnings Conference Call.
Comstock: Haynesville 'More Important Than Ever,' Writing Off TMS - Natural Gas Intelligence
Moody's rates Comstock's second lien convertible notes Caa3 and first lien ...
Moodys.com (press release) (subscription) - Oct 24, 2016
New York, October 24, 2016 -- Moody's Investors Service, (Moody's) assigned a Caa3 to Comstock Resources, Inc.'s (Comstock) approximate $440 million second lien convertible notes due 2019 and 2020. Moody's also assigned a B3 to Comstock's new ...
Comstock Resources Inc (CRK) to Release Earnings on Friday
The Cerbat Gem - 8 hours ago
Comstock Resources logo Comstock Resources Inc (NYSE:CRK) will be releasing its earnings data before the market opens on Friday, February 24th.
Most recent Trading report: Comstock Resources, Inc. (NYSE:CRK) - Is stories
Stock Update: Estimates & Target in Focus for Comstock Resources, Inc. (NYSE:CRK) - Aiken Advocate
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for CRK to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate CRK's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$10.52 Current Price

$-22.09 Growth Price (DCF)

Why is this negative?


Show Free Cash Flow numbers

$-3.63 Book Price

Overvalued by 134.47%


Very Poor Cash Return on Invested Capital over the past 5 years

CRK has failed to generate positive returns on its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

CRK has lost $15.32 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow -720.60M -325.88M -160.97M -233.80M -131.64M
divided by
Invested Capital 2.40B 2.41B 1.94B 2.11B 966.12M
Cash ROIC -30.07% -13.51% -8.29% -11.08% -13.63%

Very Poor Return on Equity over the past 5 years

CRK has shown an inability to deliver results for shareholders. This could be due to poor management, CRK operating in a highly competitive industry, or having a weak business in general.

CRK has generated a $3.24 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income -33.47M -100.06M 41.03M -57.11M -1.05B
divided by
Stockholders' Equity 1.04B 933.53M 952.01M 870.27M -171.26M
Return on Equity -3.23% -10.72% 4.31% -6.56% -

Poor Business Performance over the past 10 years

CRK's inability to produce positive free cash flow for the majority of the past 10 years is concerning. It should be a red flag, since this company does not have a track record of delivering results for shareholders. This could be due to poor management or the nature of its business.

CRK has been losing money for the majority of the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow -164.62M -296.74M 272.14M -173.73M -225.74M -720.60M -325.88M -160.97M -233.80M -131.64M

Very Weak Balance Sheet

CRK is in a poor financial position. This could be due to a slowdown in sales, indulging in debt-fuelled growth, or the nature of CRK's business. If it is highly capital intensive (see Economic Moat), they likely have to outlay significant capital just to stay competitive. This habit often destroys more value than it creates.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash 10.72M 24.41M 55.15M 186.45M 86.37M 56.10M 16.78M 2.97M 2.07M 134.01M
Current Assets 98.83M 124.51M 130.03M 273.39M 135.73M 113.09M 77.15M 57.13M 61.22M 156.24M
Total Assets 1.88B 2.35B 1.58B 1.86B 1.96B 2.64B 2.57B 2.14B 2.27B 1.20B
Current Liabilities 151.86M 130.80M 114.46M 94.77M 155.06M 187.21M 139.06M 195.00M 162.17M 95.72M
Total Liabilities 1.20B 1.58B 515.81M 792.85M 895.68M 1.60B 1.63B 1.19B 1.40B 1.37B
Stockholder' Equity 682.56M 771.64M 1.06B 1.07B 1.07B 1.04B 933.53M 952.01M 870.27M -171.26M
Current Ratio 0.65 0.95 1.14 2.88 0.88 0.60 0.55 0.29 0.38 1.63
TL-to-TA 0.64 0.67 0.33 0.43 0.46 0.61 0.64 0.56 0.62 1.14

Low or No Reinvestment of Profits over the past 10 years

CRK has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to CRK operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings 293.04M 361.94M 613.91M 577.44M 557.85M 524.38M 424.32M 447.35M 366.41M -680.70M
Retained Earnings Growth - 23.51% 69.61% -5.94% -3.39% -6.00% -19.08% 5.43% -18.09% -285.78%

Erratic Net Profit Margins over the past 10 years

CRK has had highly erratic net profit margins which are a great cause for concern. This company may operate in a highly volatile industry, or it may just have poor performance. Look at reasons for this inconsistency to understand if there is any reason to look past it.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 70.67M 68.90M 251.96M -36.47M -19.59M -33.47M -100.06M 41.03M -57.11M -1.05B
divided by
Revenue 511.93M 687.07M 590.31M 291.08M 349.14M 434.37M 456.19M 420.29M 555.23M 252.42M
Net Profit Margin 13.80% 10.03% 42.68% -12.53% -5.61% -7.71% -21.93% 9.76% -10.29% -414.82%

Strong Pricing Power over the past 10 years

CRK has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$84.95 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit 384.49M 520.36M 503.58M 221.90M 321.99M 434.37M 414.86M 403.05M 518.54M 163.34M
divided by
Revenue 511.93M 687.07M 590.31M 291.08M 349.14M 434.37M 456.19M 420.29M 555.23M 252.42M
Gross Margin 75.11% 75.74% 85.31% 76.23% 92.22% 100.00% 90.94% 95.90% 93.39% 64.71%

High Capital Intensity over the past 10 years

CRK spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

755.67% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure 529.23M 743.04M 418.73M 349.99M 537.40M 1.01B 588.11M 422.24M 634.79M 161.73M
divided by
Net Income 70.67M 68.90M 251.96M -36.47M -19.59M -33.47M -100.06M 41.03M -57.11M -1.05B
Capital Expenditure Ratio 748.92% 1,078.42% 166.19% -959.63% -2,743.80% -3,004.01% -587.76% 1,029.14% -1,111.50% -15.44%

Inconsistent Dividend History over the past 10 years

CRK has started distributing dividends in the past couple years or has recently suspended their dividend distribution. The reliability of future distributions is unclear.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Dividend Paid - - - - - - - 18.00M 23.83M -
divided by
Shares Outstanding 43.56M 44.41M 45.44M 45.00M 45.56M 46.00M 46.42M 46.55M 46.55M 46.11M
Dividend Paid Per Share - - - - - - - 0.39 0.51 -
Price at Year End 31.06 34.78 46.59 41.43 25.01 15.30 15.01 17.90 6.75 1.73
Dividend Yield - - - - - - - 2.16% 7.58% -

History of Stock Buybacks over the past 10 years

CRK has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding 43.56M 44.41M 45.44M 45.00M 45.56M 46.00M 46.42M 46.55M 46.55M 46.11M
Stock Bought Back - -1.91% -2.28% 0.97% -1.22% -0.95% -0.92% -0.28% 0.01% 0.94%
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